Former TJ Hughes store staff win compensation
- 28 September 2012
- From the section Scotland business
Dozens of Scottish staff who lost their jobs after store chain TJ Hughes went into administration last year have been awarded compensation.
Trade union Usdaw said an employment tribunal found TJ Hughes and administrators Ernst and Young failed in their legal duty to consult with Usdaw before making the redundancies.
In August 2011 a total of 75 staff in Dundee and Dumfries lost their jobs.
Usdaw said the workers won compensation worth up to £3,200 each.
As TJ Hughes was in administration at the time of the redundancies, compensation will be paid by the Insolvency Service.
The compensation has been limited to eight weeks' pay, capped at £400 a week.
In a statement, Ernst and Young said the award related to TJ Hughes' failure to consult with employees prior to their redundancy.
It added: "Unfortunately in insolvency situations it is not always possible to consult with employees and their representatives as redundancies are often made with little or no notice as the time is not afforded to the business due to its financial position.
"In our role as administrators, we provide regular updates to employees on the status of the business and the administration process in various forms."
Usdaw is making similar claims for its members who were made redundant from TJ Hughes stores in England, Wales and Northern Ireland, but these have yet to be heard.
Usdaw national officer John Gorle said: "I'm sure our members will be delighted that Usdaw has secured this award for them, but unfortunately it still remains scant recompense for losing your job, especially after many years loyal service to the company."